CHAPTER 1

EXECUTIVE SUMMARY

The executive summary highlights the important aspects of the study. It presents

the relevant information regarding the proposed business and the methodology used to

gather data. This chapter also provides brief summary about the preceding chapters

and further shows the terms and the scope and limitations set by the proponents of this

study.

Business Name

The business will be named “Chicken Shack Poultry”. The word “shack” means a

small, rundown building used as a shelter. Chicken Shack Poultry will serve as a rearing

shelter for the chickens and at the same time will provide a good quality of dressed

chicken to the neighboring public markets.

Location

The head office will be located in Sitio Taghangin, Morong, Rizal. This will serve

as the legal address and production place for the business’ main product. It will be

situated beside the national road. The proponents have chosen this area because of its

visibility and accessibility for their target market. The place has a wide area that is

suitable for raising chickens.

 Figure 1
Location

Description of the Business Logo

The proponents created a business logo (as shown in Figure 2) that will further

emphasize the business name. They came up with the idea of putting a chicken and a

house/shack together for the Chicken Shack Poultry as it aimed to be, is a rearing

shelter for chickens. Another purpose of putting the chicken on the business logo is to

encourage the consumers to patronize our products.

 Figure 2
Company Logo

In business, you need to understand the traits, qualities and moods of the colors

you will use that will create a message you wish to send to your target market. The

proponents have chosen the colors red and yellow for the business logo that will provide

a positive energy as both colors express warmth and optimism. The red color has the

power to attract, excite and motivate the consumers to buy. On the other hand, yellow

color stimulates the logical side of the brain and mental clarity.

Brief description of the business

The following explanations briefly discuss the nature of the business:

A. Company background

Chicken shack poultry is a business that will offer variety of by products

and dressed chicken into the market, the business will be founded by the

organization named as Chicks Partnership. The organization will serve as the

carrying body of the business which aims to be the leading suppliers of dressed

chicken and its by-products in Teresa, Rizal as well as in the neighboring towns.

B. Industry type

This study focuses on chicken poultry business, therefore characterizing it

as part of the food industry. Being a food industry, the management would be

very sensitive in securing the safety of the costumers, and to preserve the quality

and cleanliness of the catered product. The management will engage the

business with the innovated technique through the use of high standards

equipment.

C. Type of organization

The form of organization will be partnership since partners are obliged to

contribute money, property and industry with the intension of dividing profits

among themselves. The business named as Chicken Shack Poultry will be

registered under the partnership name Chicks Partnership.

General objectives

The following are the objectives of Chicken Shack Poultry:

1. To be the leading producer of high quality dressed chicken and by products

into the market.

2. To compete and be known as one of the chicken poultry that uses high

standard equipment into the market.

3. To satisfy the needs of the consumer in the demand of healthy and affordable

chickens

4. To expand the operation of the business in neighboring town after 5 years

5. To increase profit by at least 5% annually.

Research and Methodology

A. Survey

The proponents conducted survey among 135 respondents to get their

perceptions and preferences regarding the proposed poultry farm business.

These respondents are meat vendors from the selected public markets in Rizal

Province. Purposive method is used to come up with the said number of

respondents. The survey was distributed among all the respondents from Rizal.
B. Purposive Method

The proponents used the purposive method to determine the needed

number of respondents. Out of 200 meat vendors in the selected public markets

in Rizal, 135 vendors were chosen to represent the target population. The

respondents are then asked to answer the questionnaires to gather significant

and relevant information needed in the study.

C. Sampling Techniques

The proponents used random sampling to gather information from the

target market. All questionnaires were distributed manually on the selected public

markets to understand further the proposed business. The proponents divide the

group into two to distribute the questionnaires to save time and collect

information easily.

D. Survey Questionnaire

The proponent agreed to use survey questionnaires to collect important

data about the target market’s preferences with regards to Chicken Shack

Poultry. Questions were prepared using the checklist method American English

Context. These questions are made by the proponents to determine the demand

of the product.
E. Research

The proponents used the information from different books, unpublished

materials, government agency units, and electronic websites as sources for their

research to gather information about the proposed business, the target location,

and other information that is significant to the feasibility study.

F. Mapping

The study covered the whole municipality of Morong, Rizal as the target

market of the study. Morong, Rizal is subdivided into 8 barangays.

Figure 3
Mapping
G. Search of internet, Books and Libraries

The proponents used the information from different libraries and surf the

internet as a source of their study in order for them to gather information about

the business, the location, and other information that can help the study.

Domesticated over 7,400 years ago, the chicken belongs to

the Galliformes order and is believed to have originated from the red jungle fowl

(Gallus gallus) with some hybridization with the grey jungle fowl (Gallus

sonneratii).

Jungle fowl are predominantly ground dwelling birds living in areas with

dense overhead vegetation. Jungle fowl are ground layers, hens select a nest

site that is a well concealed hollow that may or may not be lined with grass or

leaves. They lay a “clutch” (a set of eggs produced or incubated at one time) of

five to eight eggs. They then become broody (physiologically ready to incubate

eggs after having completed egg laying) and sit on the eggs to incubate them.

Hens cease to be broody and drive the chicks away when they are six to eight

weeks old.

At present days, there are many breeds of fowl, but only a small number

are used to breed the commercial birds that most poultry farmers use. In

commercial poultry production, in many parts of the world including the

Philippines, there are two types of bird, an egg type and a meat type, with a

number of breeds within each type. The egg type (or layers) and the meat type

(or broilers) both produce eggs and meat, the difference is in how efficiently they

produce these commodities. These types are derived from the more traditional
breeds that have been combined in different ways and selected for particular

characteristics over a number of generations to end up with the commercial layer

or broiler. A useful analogy may be seen in cattle, where specialist dairy and

meat breeds have been developed over centuries through selective breeding. As

is the case with cattle, selection for the improvement of the economically

important characteristics is an ongoing activity in poultry breeding programs.

In addition to that, the chicken meat industry produces meat and uses a

different type or breed of chicken than that used for egg production. Some meat

type breeds can produce over 1 kg of live weight from less than 2 kg of feed.

Strains of chickens bred for meat production are called meat chickens. The

word broiler is an American term for meat producing birds which is commonly

used in the Philippines. A dressed fowl is one that has been killed, plucked, and

had its feet, neck and internal organs removed. The term is derived from the bird

being ‘dressed up’ to go to market.

Furthermore, Poultry is the most progressive animal enterprise today. It is

one of the world’s major and fastest producers of meat while in the Philippines, it

has been a significant contributor to the country's agriculture sector. Four years

back, the Philippines surprised everyone by winning Asia’s most prestigious

award in “Livestock Asia,” the Oscars of the industry held in Kuala Lumpur,

Malaysia.

Since from the beginning, Filipinos is one of the largest number of

consumers when it comes to chicken. A lot of Filipino consumers are getting

health conscious based on the fact that healthy food business is also rising.
Being known all around the world for its protein content, chicken has a wide

range of health benefits. According to the USDA , chicken (100 g) has moisture

(65 g), energy (215 kcal), protein (18 g), fat (15 g), saturated fat (4 g), cholesterol

(75 mg), calcium (11 mg), iron (0.9 mg), magnesium (20 mg), phosphorus (147

mg), potassium (189 mg), sodium (70 mg), and zinc (1.3 mg). In terms of

vitamins, it contains vitamin C, thiamin, riboflavin, niacin, vitamin B-6, folate,

vitamin B-12, vitamin A, vitamin E, vitamin D, and vitamin K.

Chicken is one of the highest protein suppliers. Protein plays an important

role in our diet. It is made of amino acids, which are the building blocks of our

muscles. Generally, the recommended amount of daily protein requirement is 1

gram per 1 kg of body weight or 0.4 g of protein per pound of body weight. For

athletes, the daily requirement of protein is about 0.6 g to 0.9 g per pound.

Chicken is not only a good source of protein but is also very rich in

vitamins and minerals. For example, B vitamins are useful in preventing cataracts

and skin disorders, boosting immunity, eliminating weakness, regulating

digestion, and improving the nervous system, as well as preventing migraine,

heart disorders, gray hair, high cholesterol, and diabetes.

Vitamin D helps in calcium absorption and bone strengthening. Vitamin A

helps in building eye sight and minerals such as iron are helpful in hemoglobin

formation, muscle activity, and eliminating anemia. Potassium and sodium are

electrolytes, phosphorus is helpful in tackling weakness, bone health, brain

function, dental care, and metabolic issues.

 Businesses and industries cannot thrive without consumers to buy its

goods and services. But more than that, consumers are important for a very

fundamental reason. They give direction to our economic system by deciding

what shall not be produce. If consumers show little or no interest in a product,

then this act as a way of informing the business enterprise concerned to produce

something which the consumers want most or go out of business, thus the

blossom of sustainable new products.

Project Summary

It presents a brief description of the projects and its overall summary which

includes market, technical, management and legal, financial and socio- economic

feasibilities of the project.

A. Marketing Study

This part show the target market characteristics as presented through the

survey analysis. It also presents an analysis of supply and demand together with

the projected unit sales for the next five (5) years. Furthermore, it shows the

marketing strategy of the business including the projected marketing programs

which will help in promoting the product and gaining advantages against

competitors.
B. Technical Study

This chapter further describes the product of the business as well as the

costs to be incurred and the price of the product. It covers the main operational

requirements such as the direct materials needed, direct labor and manufacturing

overhead. It also shows a complete view of the business layout and location

together with the official uniform to be wear during the operational hours. Taking

suitable care to these needs help the business increase its productivity and give

higher efficiency and effectiveness to business operations.

C. Management and Legal Study

This part identifies the Vision, Mission and Core Values of the business

including a clear and precise identification of duties and responsibilities, flow of

authority and manpower level requirement. It also provides the established

policies and procedure, including the standard operating procedure, that should

be undertaken to create a sound foundation of the management. The legal study

showa the rules and regukations the management must follow in accordance

with the governement laws and principles.

D. Financial Study

Financial study determines the amount of money needed in the realization

of the project, specifically in the sources of financing and the costs involved. It
 provides information with regards to the business’ financial performance for five

(5) years. This chapter also identifies major assumptions of the proposed

business as applied with the presentation of the projected financial statements.

The continuous operations of the business is based on the availability of funds.

E. Socio-Economic Study

Socio-economic study determines the contribution of the business to the

Philippine Society and Economy. It show the benefits that the business aims to

provide to the general public.

Definition of Terms

For better understanding and interpretation of this study, the following

terms are operationally defined:

Chicken. The chicken (Gallus gallus domesticus) is a type of domesticated fowl,

a subspecies of the red junglefowl. It is one of the most common and

widespread domestic animals, with a total population of more than 19 billion as of

2011.

Dressed Chicken. It is a processed chicken.

Livestock. Domesticated animals raised in an agricultural setting to

produce commodities such as food, fiber, and labor. The term is often used to
 refer solely to those raised for food, and sometimes only farmed ruminants, such

as cattle and goats.

Partnership. A business whereby two or more persons bind themselves to

contribute money, property and industry with the intention of dividing profits

among themselves.

Poultry. Domesticated birds kept by humans for their eggs, their meat or

their feathers. These birds are most typically members of

the superorder Galloanserae (fowl), especially the order Galliformes (which

includes chickens, quails and turkeys).

Shack. A small house or building for a particular use.

Scope and Limitation

The coverage of the study was limited to the preferences of the respondents from

the selected public markets in Rizal province. This was done to have a deep

understanding on the proposed business.

The respondents of the study were composed of 135 meat vendors to represent

the target population of 200 vendors from the selected public markets. The

questionnaires were administered to the respondents selected through random

sampling, in September, 2017 and retrieved on the day of the survey.